Volkswagen Acquires Stake in Canadian Lithium Miner

Germany-based Volkswagen Group announced it will acquire 9.9% of Canada-based lithium exploration company Patriot Battery Metals. The company considers this acquisition will allow it to secure critical minerals to feed its battery manufacturing plants in North America and Europe. 

Volkswagen’s transaction was valued at US$48 million to acquire Patriot Battery Metal’s shares. This investment is part of a broader agreement that includes a binding offtake commitment for the supply of 100,000t of spodumene concentrate annually for a 10-year period, starting once the Patriot Battery Metals’ Shaakichiuwaanaan Lithium Project begins production. Spodumene concentrate is essential for the production of battery-grade lithium chemicals used in electric vehicle (EV) batteries.

The offtake agreement is a significant step for Volkswagen Group's battery manufacturing unit PowerCo, in its efforts to scale up cell production in Europe and North America. The partnership will support PowerCo’s gigafactory in St. Thomas, Canada, which will be the company’s largest battery cell facility, with a production capacity of up to 90GWh.

Patriot’s Shaakichiuwaanaan Lithium Project, one of the largest lithium pegmatite resources in the Americas and the eighth-largest globally, is progressing rapidly, reports Volkswagen. The project’s high-grade deposit is expected to provide long-term security for PowerCo’s battery cell factories.

In addition to the supply agreement, the partnership includes collaborative efforts to establish industry best practices for ESG standards across activities. These efforts will focus on waste disposal, water management, First Nations community engagement, and actions to meet both companies’ carbon emission targets. Furthermore, the two companies have signed a non-binding Memorandum of Understanding to explore opportunities for creating a sustainable and cost-competitive battery-grade lithium chemicals supply chain.

Thomas Schmall, Board Member for Technology, Volkswagen Group, highlighted that the investment is a key milestone in the company’s transition to a fully electric future, securing crucial raw materials for sustainable battery technology. Schmall also noted the strategic importance of the partnership in strengthening Volkswagen’s commitment to North America. 

“This is the next step in PowerCo’s mission to become a global battery player with roots in Europe and North America. By building a North American supply chain for EV batteries together with partners, we are strengthening our footprint in the region and driving forward the development of a resilient, sustainable battery industry,” added Jörg Teichmann, Chief Procurement Officer, PowerCo. 

Ken Brinsden, CEO, Patriot Battery Metals, acknowledged the partnership’s importance, as it validates the quality of the Shaakichiuwaanaan Lithium Project and the company’s role in the global EV supply chain.